Business Law: Sources, Role of Government, Impact on Business, Formation of Organizations, Dispute Resolution

This document provides an overview of business law, including the sources of law, the role of government in making law, the impact of employment and contract law on business, the formation of various types of organizations, and legal solutions for resolving disputes. It discusses the need and significance of legal policies in the workplace using a specific example of a delivery services company. The document also highlights the legal system in the UK, the types of laws and their sources, and the procedures for forming and managing different types of organizations. It concludes with an explanation of alternative dispute resolution methods for resolving conflicts in business.

BUSINESS LAW

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Sources of law........................................................................................................................1
P2 Role of government in making law........................................................................................2
TASK 2............................................................................................................................................3
P3 Impact of employment and contract law on business............................................................3
TASK 3............................................................................................................................................4
P4 Formation of various types of an organizations.....................................................................4
P5 How business organization are managed and funded............................................................5
TASK 4............................................................................................................................................6
P6 Legal solutions for resolving disputes...................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is a cluster of norms, beliefs, rules and regulations which is enacted by legal
bodies of a nation for smooth functioning of entire corporate world. Main objective of legislation
is to minimize the possibilities of fraudulent activities that might incur while running a business
(Mann and Roberts, 2011). Therefore, whole project is going to circulate around the need and
significance of legal policies at workplace with the help of specific example. For instance;
Pegasus is an organization which was established by Jay and Alex for providing delivery
services to the desired customers will considered in this project. Initially, company wanted to
know the legal system of a nation for expanding their business as well as government role in
amending laws. Furthermore, legal rules of managing and handling business are also outlined in
the assignment for smooth functioning of an organization.
TASK 1
P1 Sources of law
According to the given case study, Pegasus is an organization which was set up Jay and
Alex in a partnership for delivering goods that were ordered online. The business has expanded
in a very fastest way by providing on time services to their desired clients. Thus, in order to run
their business in legal way and for expanding it as more as possible, company wanted to know
about the legal system of nation. As it helps them in performing each or every aspect in better
manner as well as assist in a complex situations. Basically, legal system of UK consist of various
rules and regulations by showing the rights or obligations of several members which were
working in a business. In fact, number of acts and amendments are done by legitimate bodies
with distinctive purpose (Kroes, 2010). However, there are two types of sources are identified
which shows the reason behind amendment of particular laws such as primary and secondary.
Some of them are discussed as follows-
Primary sources are considered as statements of the law itself which is divided into two
categories such as;
Legislation- Statutes and regulations which were set by legal bodies are known as
primary source of law because these are first hand and used by judiciary court only. For
example; Act of parliaments, orders sanctioned by government, constitutional rights set by
governing bodies and various other laws which was amended by legal institutions.
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Case law- Petition of various cases is filed in the court on regular basis and all of them
are distinct from each other. For example; disputes between partners, customers, suppliers,
shareholders and so on. Therefore, all these cases enforce judiciary members to enforce some
legal norms by considering necessary situations. Furthermore, that statements and rule will help
tribunal in future judgement as well as direct if there is occurrence of dilemma (Macaulay,
2018).
Secondary source- On contrary to the primary legislation, this source is considered as a
subordinate law which is designed by executive branch within the boundaries laid down by
legislature but not in a similar legal force. Secondary laws are made in the form of statutory
instruments and regulation. Basically, its main purpose is to supplement, administer, support and
enforce primary sources.
After knowing these laws and various sources of legal system, Pegasus can easily expand
their business as these sources will guide the Alex and Jay during expansion process. Along with
this, make all the things legal which will not exploit by any competitors.
P2 Role of government in making law
Governing bodies of UK are playing foremost role in the law making process because an
appropriate procedure is followed by advisory body before amending a law at public place.
Basically, emergence of a sparking agenda is a beginning step because single purpose will
enforce the members of parliament to think about it. Then, the raised agenda is going to
discussed in between ministers and then all of them will mention their intentions on either
“Green and White paper” for converting it into bill. After that, bill will go through various stages
before making it as an act (Folsom and et. al., 2013). Therefore, some of the major stages which
shows the role of government in law designing are detailed below-
 First reading- Initially, bill which covers the entire agenda and issue which was raised
is going to read in front of Commons House where all the significant members of general
assembly is present.
 Second reading- Healthy and official debate is going on for understanding the opinions
of each member towards specific bill. Basically, in this stage consent of ministers will
acquire for further process on the basis of majority. However, whip system is also used
for convincing members.
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 Committee stage- Now Bill referred by House of Commons for depth examination in
order to identify the need of any additional amendments.
 Report stage- Report which was formed by committee is going back to the house for
second time voting and debate process in front of the ministers.
 Third reading- Bill is going to represent to the house for short and concise discussion as
well as for final vote whether the bill is accepted or rejected.
 House of lords- After that, Bill is sent to the House of Lords for analysing the all the
above five stages as well as to do amendment and then sent back to the House of
Commons for considering the amendment.
 Royal assent- Last but not the least, final consent is going to acquire from Monarch for
formal approval in order to make the “Bill” as an “Act”. Basically, it is a formality
under Royal Assent Act, 1961.
Hence, it become as an “Act of Parliament” which will enforced at public place for their
betterment and follows by whole society as a rule.
TASK 2
P3 Impact of employment and contract law on business
Pegasus is expanding its business due to which they have to hire employees and setting a
some standard for them such as; similar uniform for all the drivers of vans, same gross and so on.
In fact, Alex and Jay need to design norms for employees by considering necessary acts which
was implemented for employees’ betterment. For example; minimum wage act is one of the most
necessary law which must considered by Pegasus while hiring new staff. Under the act,
employees have the authority to demand for their minimum wage which is set by legal bodies of
UK. According to given case study, Alex and Jay needs to make their decision on the basis of
specific terms and conditions which is set in employment act. Along with this, before entering
into a contract with staff members they need to fulfil some certain formalities that is requisite
during hiring process (Nichols, 2012). Some of the major rules and regulations of employment
and contract law is discussed further-
Health and Safety act, 1974- As per this law, an organization is liable for providing
secure environment for their staff members in order to defend them from accidents. It means,
issue related with health or accidents which occurred at workplace is based on the environment
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of an association as well as company is responsible for the damage. Therefore, Pegasus needs to
create a safe surrounding for their employees such as; safety for drivers while serving to the
customers.
Minimum wage act, 1998- It means, legal bodies have set some rules regarding
employees wage and their working hours such as; around 5.8Euro is a wage per person by
considering their age group, 8-10 hours is a minimum working hour henceforth. It means,
Pegasus must have to follow this while signing a contract with employees and need to mention
these clauses related with job hours or salary.
Abolition of these provisions which was set by legal bodies for the employees is resulted
in a negative impact such as; employees have the authority to sue the company for wrong
contract. In fact, they can also claim and right to demand compensation if an organization get
failed in fulfilling their necessary requirements. Along with this, legal bodies might pass the
order for liquidating the association if there is violation of any of the legislation (Bhatia, 2014).
TASK 3
P4 Formation of various types of an organizations
Corporate world is classified into various types of association such as; public, private and
voluntary. Moreover, these types are also having several parts like; private firms are classified
into; partnership, sole proprietorship, limited company, private limited henceforth (Law, 2010).
However, legal bodies have designed distinct procedure for various types of associations from
which public formation is explained further-
Public corporation- First procedure before forming a Plc.
1. Selection of suitable name for an organization by searching it through UK’s WebCHeck
service in order to ensuring that name you have selected is unique. Along with this, check
registered trade marks also.
2. Fill the application for registering the company in order to provide basic information
about association.
3. Draft the memorandum of an association and articles of association by using standard
models articles which is provided in Companies House regulations.
4. It’s time for filling the incorporation documents with Companies House.
5. Apply for gaining trading certificate which must be issued by Companies House.
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Second procedure-
1. Utilized approved software for managing accounts and records of an organization.
2. Auditing of accounts is indispensable at least once a year.
3. Need to deposit your accounts as well as tax returns to the Companies House in every
year.
4. Requisite to file confirmation statement annually.
5. Notifying process of Companies House of structural as well as managerial modifications.
Third procedure-
1. Kindly receive organizational unique Taxpayer reference (UTR).
2. Register for corporation tax.
3. Register for PAYE.
4. Need to report and pay payroll taxes of employees in every month.
5. Filing of tax returns of an organization.
It shows that all the companies in corporate world need to follow an appropriate
procedure to form their business in order to follow each and every provision of legal bodies.
Thus, Pegasus also requisite to consider necessary steps before expanding its business for
minimizing the probabilities of mistakes.
P5 How business organization are managed and funded
According to legal bodies, an association needs to follow every steps and legitimate
procedure before incorporation. As it helps in minimizing the possibilities of fraudulent activity
which might affect the success of business. In fact, somehow violation of legal procedure acts as
a major obstacle in between success path of a company (Eren and et. al., 2012). Thus, some of
the major things which needs be considered for managing an association are-
 Requisite to distribute the powers between directors, board members, management team,
managers and staff members. As it supports in decreasing the work pressure from single
member. Along with this, set target can also achieve in a desired time frame.
 Treat the employees in polite manner for maintaining the positive connection with them.
 Share the important discussion with union leader of employees for making them realize
that they are also significant part of an organization. Along with this, acquire their
opinion for changes at workplace.
 Provide flexible hours to the employees in order to reduce their stress.
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On the other hand, if an organization wanted to acquire funds then they have the opportunity to
use various sources. For example; internal and external like; equity, debentures, preference
shares, marketplace, bank loans and so on. All these sources are most appropriate for gaining
funds in a legal form by making a legitimate contract with them for avoiding any future disputes.
TASK 4
P6 Legal solutions for resolving disputes
Pegasus is expanded in various areas due to which number of employees is getting hired
at workplace for managing business operations. Each and every staff members are distinct in
various terms such as; nature, background, experience, education and so on. Therefore,
differences in several factors create problem for Jay and Alex to handle them because distinctive
creates a possibility of conflicts. In fact, several issues are arises in between management and
staff members or various other people whomsoever are performing at workplace. Thus, legal
bodies have implemented an impressive law such as; ADR for controlling or resolving
conflicting situations (Grundfest, 2010).
ADR is a most suitable term which is enacted by governing bodies for corporate world
because by the use of this company can easily resolve the issues between two parties. However,
three types of methods are falls under ADR which are different from each other in various terms.
All these tools are discussed as follows-
Negotiation- According to this element, legal bodies’ states that parties which were
involved in conflicting situations can come closer to each other for clearing all the doubts.
Basically, this process is suitable for small organizations or in minor conditions where both
parties are related with each other like; might be family member, relative, friends, close
connection and so on. Most advantageous factor of this policy is that; it will safeguard the time
and consume almost zero cost.
Mediation- In this method, third party is going too needed for clearing the issues
between two members which may be either any friend, manager, member of management,
professional colleagues henceforth. However, mediator is involved in this condition due to which
this procedure extended the time period. In fact, somehow mediator always tries to control the
situation by playing from both the side and convince them for adjustment.
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Arbitration- As per this tool, legal person will involved in the situation for processing
things in professional manner as well as follows the rules set by legitimate bodies. In fact,
company needs to involve a lawyer or any other legal member whosoever is having knowledge
about legislation. As a result, it will consume heavy cost due to the involvement of third party
who is a legal person. But at the same time, entire situation will control in a peaceful manner by
clearing all the necessary facts or figures. Instead of this, procedure of arbitration maintain the
decorum of the workplace as whole process will conducted by following organizational as well
as legal policies.
Hence, by considering all the tools of ADR it has been analysed that Arbitration is most
suitable method for resolving conflicting situations of Pegasus employees. This method will help
association in maintaining their goodwill at marketplace by following company rules and
regulations.
CONCLUSION
From the above report, it has been summarized that legal laws are playing major role in
the development of an organization by directing towards corrective path. Basically, main
objective of an enterprise is to control the probabilities of wrongful conducts and managed all the
business activities in much better manner. By analysing the various laws of legal bodies, selected
get succeeded in expanding their business in legal manner. Moreover, assist the ways by which
company can minimize the disputes and source through which company can acquire fund for
business operations. For example; ADR is established by legal bodies for resolving the conflicts
which incurred at workplace with the help of various methods. Hence, it has been understood
that business laws are supporting an association from distinct manner.
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REFERENCES
Books and Journals
Mann, R.A. and Roberts, B.S., 2011. Smith and Roberson’s business law. Cengage Learning.
Kroes, Q.R. ed., 2010. E-business Law of the European Union. Kluwer law international.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Folsom, R.H and et. al., 2013. Principles of international business transactions. West Academic.
Nichols, P.M., 2012. The business case for complying with bribery laws. American Business
Law Journal, 49(2), pp.325-368.
Bhatia, V.K., 2014. Analysing genre: Language use in professional settings. Routledge.
Law, D.W., 2010. A measure of burnout for business students. Journal of education for
business, 85(4), pp.195-202.
Eren, S.S and et. al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
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